Whale ARC Keeps On Buying Even When Floating Losses Exceed $1 Million
A significant investor in the ARC token is showing no signs of slowing down despite facing substantial unrealized losses.
Over the past nine hours, the second-largest holder of ARC has kept on accumulating, adding another $1.495 million worth of tokens to their position. This most recent purchase brings their total holdings to 17.2 million ARC, which means they are still confidently holding the asset even though its price is well below their average entry cost.
Whale Accumulation Continues Despite Losses
The first accumulation of ARC by the investor happened on December 26, 2024. Since then, they have strategically purchased the token in three separate batches. Their average acquisition price is $0.3153 per token. However, ARC is currently trading at $0.2417, which means that they have a sizable unrealized loss of 23.3% on their holdings. In total, though, their floating loss on ARC has now surpassed $1.02 million.
Nonetheless, the whale seems undeterred, carrying on with what seems to be an effort to reestablish a long position even as the market shows weakness. Is this a long-term bet with a clear rationale, or just an attempt to recover losses? We have no way of knowing. But the big buying suggests they see future potential in ARC.
More Risk Exposure with AI16Z Holdings
It’s worth noting that ARC isn’t the only token where this investor confronts significant unrealized losses. They also maintain a large position in AI16Z, worth $5.75 million. However, their recent buying of this asset hasn’t worked out, and their unrealized loss on AI16Z has now swelled to $4.15 million.
ARC Whale Keeps Accumulating Despite $1M+ Floating Loss! 🐳
The second-largest holder of $ARC isn't backing down! Over the past 9 hours, they added another $1.495M worth of tokens, bringing their total holdings to 17.2M #ARC . pic.twitter.com/VwiWzOO3Bd— EyeOnChain 🔶 (@EyeOnChain) February 4, 2025
This implies that the whale has a high-risk appetite and is willing to take on and hold 10 significant drawdowns, believing that these assets will rebound. The question is whether the whale has a strong fundamental thesis for these trades or, conversely, whether it is doubling down on what could be described as a “margin of hope” for an eventual recovery.
Smart Money Move or a Trapped Position?
The market attitude and the price movements of a token are heavily influenced by big holders, also known as “whales.” When the price is going down, and whales are busy accumulating, this can be taken as a bullish sign. It implies that these large investors believe the downward price movement is temporary and that the asset class is undervalued. On the other hand, if the whale is not doing well and is stuck in a bad trade, this might not be the ironclad bullish signal that many take it for.
Both the ARC and AI16Z suffer a combined total floating loss of more than $5.17 million, which makes this investor’s position seem like a high-stakes gamble. If the market rebounds, they could be facing a situation that potentially brings them near to the significant upside of the liquidations. But if the market continues to slide, the situation is more likely to bring them “boat-side” to the significant amounts of the forced liquidations.
At present, the market is still unclear, and everyone’s attention is focused on whether this whale will keep eating up the ARC and AI16Z tokens or will instead decide to cut losses and sell some or all of what they have. The next step taken by this titan could tell us a lot about the long-term viability of those same tokens—and could say something, too, about the overall health of the crypto market.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
